Watts Water Technologies, Inc. (NYSE: WTS) today announced
results for the fourth quarter ended December 31, 2011. Net income
per diluted share from continuing operations (EPS) for the fourth
quarter of 2011 was $0.46. Adjusting for special items, fourth
quarter 2011 adjusted EPS was $0.56, compared to fourth quarter
2010 adjusted EPS of $0.40. A summary of fourth quarter and full
year financial results is as follows:
Fourth Quarter and Full Year Earnings Summary
(In millions, except per share
information) Fourth quarter ended December 31 Year ended December
31 2011 2010 % Change 2011 2010 % Change Sales
$ 360.2 316.7 14 % $ 1,436.6 1,274.6 13 % Net income from
continuing operations 17.1 11.4 50 % 64.7 63.1 3 % Income
(loss) from discontinued operations (0.1 ) (0.1 ) - 1.7 (4.3 ) NA
Net income $ 17.0
11.3 50 % $ 66.4 58.8 13 % Diluted
earnings per share from continuing operations $ 0.46 0.30 53 % $
1.73 1.69 2 % Special items 0.10 0.10 0.46 0.28
Adjusted earnings per share $ 0.56 0.40 40 % $ 2.19 1.97 11 %
All financial information and period-to-period references are
on a continuing operations basis unless otherwise noted.
Reconciliations to discontinued operations and generally
accepted accounting principles (GAAP) and non-GAAP reconciliations
are provided in the attached financial tables.
Fourth Quarter/Full Year Highlights and Subsequent
Event:
- Fourth quarter 2011 sales increased 14%
from the fourth quarter of 2010, 10% from acquisitions and 4% from
organic growth.
- Adjusted 2011 fourth quarter EPS of
$0.56 represents an increase of 40% over the fourth quarter of
2010. Excluding the results of Danfoss Socla S.A.S and related
acquired business (Socla), the increase is 33% over the fourth
quarter of last year.
- Adjusted operating margins increased by
0.7 percentage points to 10.3% for the fourth quarter of 2011 as
compared to the fourth quarter of 2010; operating margins on a GAAP
basis decreased 0.1 percentage points to 7.3% in the fourth quarter
of 2011, as compared to the fourth quarter of 2010.
- Full year 2011 sales increased mainly
due to acquisitions, organic growth and favorable foreign
exchange.
- Adjusted 2011 full year EPS of $2.19
represents an increase of 11% over 2010. Excluding the results of
Socla, the increase was 5% above adjusted earnings for 2010.
- 2011 free cash flow of $106.3 million
represented a 164% cash conversion rate of free cash flow to net
income from continuing operations. 2011 is the fourth consecutive
year that free cash flow has exceeded net income.
- On January 31, 2012, we finalized the
purchase of tekmar Control Systems.
The fourth quarter 2011 sales increase was due to contributions
from the Socla acquisition of 10%, and from organic sales growth of
4%. Operating income for the fourth quarter of 2011 was $26.4
million, which yielded operating margins of 7.3%, compared to
operating income in the fourth quarter of 2010 of $23.4 million,
which yielded operating margins of 7.4%. On an adjusted basis,
operating income in the fourth quarter of 2011 was $37.2 million
compared to $30.3 million in the fourth quarter of 2010, a 23%
increase. On an adjusted basis, operating margins increased 0.7
percentage points to 10.3% in the fourth quarter of 2011, compared
to 9.6% on an adjusted basis for the fourth quarter of 2010.
North American sales increased $10.8 million to $199.7 million
in the fourth quarter of 2011, compared to $188.9 million for the
fourth quarter of 2010. This increase was due to an organic sales
increase of $8.3 million and acquired sales of $2.7 million, offset
partially by unfavorable foreign exchange movements of $0.2 million
associated with the weakening of the Canadian dollar against the
U.S. dollar. Sales into the North American wholesale market
increased organically by 5% during the fourth quarter as compared
to the same period in 2010, primarily from increased sales in both
our residential and commercial, and gas and HVAC product lines.
Organic sales into the North American DIY home improvement market
increased 3% for the fourth quarter of 2011 as compared to the
fourth quarter of 2010 primarily from increased sales of
residential and commercial products.
European sales increased $32.5 million to $154.4 million for the
fourth quarter or 2011, compared to $121.9 million for the fourth
quarter of 2010. This increase was primarily due to sales from
acquired companies of $28.3 million, and an organic sales increase
of $5.2 million, offset partially by unfavorable foreign exchange
movements associated with the weakening of the euro versus the U.S.
dollar of $1.0 million. Organic sales in the European wholesale
market and the OEM market both increased by 5% over the fourth
quarter of 2010. Sales of our drain product lines drove the
wholesale sales increase, and the OEM market increase was driven by
gas & HVAC products. European segment sales represented
approximately 43% and 39% of total Company sales in the fourth
quarters of 2011 and 2010, respectively.
The full year 2011 sales increase of $162.0 million was due to
growth from acquisitions of $105.0 million, organic growth of $29.0
million and favorable foreign exchange movements of $28.0 million.
EPS for the full year 2011 was $1.73. This represents an increase
of 2% as compared to $1.69 of EPS reported for the full year 2010.
Adjusting for special items, 2011 EPS was $2.19, compared to 2010
adjusted EPS of $1.97, an increase of 11%. Excluding the Socla
acquisition, 2011 full year adjusted earnings were $2.06, 5% above
adjusted earnings of $1.97 for the full year 2010.
David J. Coghlan, Chief Executive Officer, commented, “Compared
to the fourth quarter of 2010, our organic sales increased by 4%,
with increases in both the North American and Europe segments. For
each incremental organic sales dollar, organic operating earnings
increased by 37% in the fourth quarter. Adjusted operating income
increased by 23% in the fourth quarter of 2011 as compared to the
fourth quarter of 2010, driven by Socla’s contribution, margin
contribution from incremental sales and productivity initiatives.
We recorded two large transactions during the fourth quarter. The
first was an after-tax charge of $11.3 million for the impairment
of long-lived assets of a subsidiary in Europe that has not
performed up to expectations. The second transaction was an
after-tax gain of $11.4 million recorded upon the disposition of a
former subsidiary in Asia. Although the year proved challenging for
the end markets we serve, for the full year 2011 we grew sales
organically by 2% and had operating income growth of 12% on an
adjusted basis.”
Mr. Coghlan concluded, “We continued to generate strong cash
flows this year, delivering $106.3 million of free cash flow in
2011, as compared to free cash flow of $91.0 million in 2010. Our
conversion rate of free cash flow to net income from continuing
operations was 164% as compared to 144% in 2010. This is the fourth
consecutive year that we generated free cash flows in excess of net
income. At December 31, 2011, our net debt to capitalization ratio
was 13.9%, as compared to 5.2% at December 31, 2010, and the
increase driven by cash utilized for, and debt incurred, as part of
the Socla acquisition. As of year-end, we had approximately $251
million of cash on hand and approximately $252 million in available
credit under our credit agreement. Finally, on January 31, 2012, we
finalized the purchase of tekmar Controls Systems, a Canadian-based
designer and manufacturer of control solutions for HVAC
applications. We believe the tekmar product line will dovetail
nicely with our existing hydronic systems offerings. In closing, we
were particularly pleased with the way our teams closed out some
challenging restructuring programs, drove our continuous
improvement efforts and responded to commodity cost issues while
delivering strong sales growth and an 11% increase in adjusted EPS.
These were significant accomplishments in challenging economic
times.”
In this press release we refer to non-GAAP financial measures
(including adjusted operating income, adjusted operating margins,
adjusted net income from continuing operations, adjusted earnings
per share, adjusted earnings per share excluding Socla, free cash
flow, net debt to capitalization ratio and the cash conversion rate
of free cash flow to net income from continuing operations) and
provide a reconciliation of those non-GAAP financial measures to
the corresponding financial measures contained in our consolidated
financial statements prepared in accordance with GAAP. We believe
that these financial measures are appropriate to enhance an overall
understanding of our historical financial performance and future
prospects. Adjusted operating income, adjusted operating margins,
adjusted net income from continuing operations and adjusted
earnings per share eliminate certain expenses incurred in the
periods presented that relate primarily to our global restructuring
programs, impairment charges, CEO separation costs, significant
legal settlements, product liability and workers’ compensation
accrual decreases, acquisition earn out adjustments, due diligence
costs, acquisition accounting costs, tax adjustments, and other
costs and related tax benefits. Also, adjusted earnings per share
excluding Socla, exclude the effect of a newly acquired company.
Management then utilizes these adjusted financial measures to
assess the run-rate of the Company’s continuing operations against
those of comparable periods without the distortion of those
factors. Free cash flow and the net debt to capitalization ratio,
which are adjusted to exclude certain cash inflows and outlays, and
include only certain balance sheet accounts from the comparable
GAAP measures, are an indication of our performance in cash flow
generation and also provide an indication of the Company's relative
balance sheet leverage to other industrial manufacturing companies.
The cash conversion rate of free cash flow to net income from
continuing operations is also a measure of our performance in cash
flow generation. These non-GAAP financial measures are among the
primary indicators management uses as a basis for evaluating our
cash flow generation and our capitalization structure. In addition,
free cash flow is used as a criterion to measure and pay certain
compensation-based incentives. For these reasons, management
believes these non-GAAP financial measures can be useful to
investors, potential investors and others. The Company’s non-GAAP
financial measures may not be comparable to similarly titled
measures reported by other companies. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for financial measures prepared in accordance
with GAAP.
Watts Water Technologies, Inc. will hold a live web cast of its
conference call to discuss fourth quarter results for 2011 on
Tuesday, February 21, 2012, at 9:00 a.m. Eastern Time. This press
release and the live web cast can be accessed by visiting the
Investor Relations section of the Company's website at
www.wattswater.com. Following the web cast, an archived version of
the call will be available at the same address until February 21,
2013.
The Company's 2012 Annual Meeting of Stockholders will be held
at 9:00 a.m. on Wednesday, May 16, 2012 at the Company’s executive
offices located at 815 Chestnut Street, North Andover,
Massachusetts.
Watts Water Technologies, Inc. is a world leader in the
manufacture of innovative products to control the efficiency,
safety, and quality of water within residential, commercial, and
institutional applications. Its expertise in a wide variety of
water technologies enables it to be a comprehensive supplier to the
water industry.
This Press Release may include statements that are not
historical facts and are considered forward-looking within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements reflect Watts Water Technologies’
current views about future results of operations and other
forward-looking information. In some cases you can identify these
statements by forward-looking words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should”
and “would” or similar words. You should not rely on
forward-looking statements because Watts’ actual results may differ
materially from those indicated by these forward-looking statements
as a result of a number of important factors. These factors
include, but are not limited to, the following: the current
economic and financial condition, which can affect levels of
housing starts and remodeling, affecting the markets where the
Company’s products are sold, manufactured, or marketed; shortages
in and pricing of raw materials and supplies; loss of market share
through competition; introduction of competing products by other
companies; pressure on prices from competitors, suppliers, and/or
customers; changes in variable interest rates on Company
borrowings; identification and disclosure of material weaknesses in
our internal control over financial reporting; failure to expand
our markets through acquisitions; failure or delay in developing
new products; lack of acceptance of new products; failure to
manufacture products that meet required performance and safety
standards; foreign exchange rate fluctuations; cyclicality of
industries, such as plumbing and heating wholesalers and home
improvement retailers, in which the Company markets certain of its
products; environmental compliance costs; product liability risks;
the results and timing of the Company’s manufacturing restructuring
plan; changes in the status of current litigation; and other risks
and uncertainties discussed under the heading “Item 1A. Risk
Factors” in the Watts Water Technologies, Inc. Annual Report on
Form 10-K for the year ended December 31, 2010 filed with the
Securities Exchange Commission and other reports Watts files from
time to time with the Securities and Exchange Commission. Watts
does not intend to, and undertakes no duty to, update the
information contained in this Press Release, except as required by
law.
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in millions,
except per share information) (Unaudited)
Fourth Quarter Ended Year Ended
December 31, December 31,
December 31, December 31,
2011 2010
2011
2010
STATEMENTS OF
INCOME (LOSS)
Net sales
$ 360.2 $ 316.7
$
1,436.6 $ 1,274.6 Net income from continuing
operations
$ 17.1 $ 11.4
$ 64.7 $ 63.1
Income (loss) from discontinued operations
(0.1
) (0.1 )
1.7 (4.3 ) Net income
$ 17.0 $ 11.3
$ 66.4 $
58.8
DILUTED EARNINGS
PER SHARE
Weighted Average Number of Common Shares & Equivalents
36.8 37.6
37.5 37.4 Net income (loss) per
share Continuing operations
$ 0.46 $ 0.30
$
1.73 $ 1.69 Discontinued operations
-
-
0.05 (0.12 ) Net income
$ 0.46 $ 0.30
$ 1.78 $
1.57 Cash dividends per share
$
0.11 $ 0.11
$ 0.44 $ 0.44
WATTS WATER
TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (Amounts in millions, except share information)
(Unaudited) December 31,
December 31, ASSETS
2011 2010 CURRENT ASSETS: Cash and cash
equivalents $
250.6 $ 329.2 Short-term investment securities
4.1 4.0 Trade accounts receivable, less allowance for
doubtful accounts of $9.1 million at December 31, 2011 and $8.9
million at December 31, 2010
207.1 186.9 Inventories, net:
Raw materials
107.7 101.9 Work in process
28.7 19.9
Finished goods
147.8 143.8 Total Inventories
284.2 265.6 Prepaid expenses and other assets
26.6
18.4 Deferred income taxes
37.4 41.1 Assets held for sale
4.6 10.0 Assets of discontinued operations
-
1.8 Total Current Assets
814.6 857.0
PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment
494.8 450.5 Accumulated depreciation
(268.1 )
(253.0 ) Property, plant and equipment, net
226.7
197.5 OTHER ASSETS: Goodwill
490.4 428.0 Intangible
assets, net
154.6 152.6 Deferred income taxes
1.1 0.9
Other, net
10.1 10.1 TOTAL ASSETS $
1,697.5 $ 1,646.1 LIABILITIES
AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $
126.5 $ 113.9 Accrued expenses and other liabilities
109.2 115.6 Accrued compensation and benefits
45.9
42.6 Current portion of long-term debt
2.0 0.7 Liabilities
of discontinued operations
- 5.8 Total Current
Liabilities
283.6 278.6 LONG-TERM DEBT, NET OF
CURRENT PORTION
397.4 378.0 DEFERRED INCOME TAXES
58.2 40.1 OTHER NONCURRENT LIABILITIES
38.5 47.9
STOCKHOLDERS' EQUITY: Preferred Stock, $0.10 par value; 5,000,000
shares authorized; no shares issued or outstanding
- - Class
A Common Stock, $0.10 par value; 80,000,000 shares authorized; 1
vote per share; issued and outstanding: 29,471,414 shares in 2011
and 30,102,677 shares in 2010
2.9 3.0 Class B Common Stock,
$0.10 par value; 25,000,000 shares authorized; 10 votes per share;
issued and outstanding: 6,953,680 shares in each of 2011 and 2010
0.7 0.7 Additional paid-in capital
420.1 405.2
Retained earnings
515.1 492.9 Accumulated other
comprehensive loss
(19.0 ) (0.3 ) Total Stockholders'
Equity
919.8 901.5 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $
1,697.5 $ 1,646.1
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in
millions, except per share information) (Unaudited)
Fourth Quarter Ended
Year Ended December 31, December 31,
December
31, December 31,
2011 2010
2011 2010 Net sales $
360.2 $ 316.7 $
1,436.6 $ 1,274.6 Cost of goods sold
231.7 203.8
921.1 809.7
GROSS PROFIT
128.5 112.9
515.5 464.9 Selling, general
& administrative expenses
92.1 84.3
379.9 336.7
Restructuring and other charges (income)
0.6 4.0
8.8
12.6 Goodwill and other long-lived asset impairment charges
17.1 1.2
17.4 1.4 Gain on disposal of business
(7.7 ) - (7.7 ) -
OPERATING INCOME
26.4 23.4
117.1
114.2 Other (income) expense: Interest income
(0.3 ) (0.3 )
(1.0 ) (1.0 ) Interest
expense
6.7 6.1
25.8 22.8 Other, net
0.4
(0.8 )
0.8 (2.1 )
6.8 5.0
25.6 19.7 INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
19.6 18.4
91.5 94.5 Provision for
income taxes
2.5 7.0
26.8 31.4
NET INCOME FROM CONTINUING OPERATIONS
17.1 11.4
64.7 63.1 Income (loss) from discontinued operations, net of
taxes
(0.1 ) (0.1 )
1.7 (4.3 ) NET
INCOME $
17.0 $ 11.3 $
66.4 $
58.8 BASIC EPS Net income (loss) per share:
Continuing operations $
0.47 $ 0.30 $
1.73 $ 1.69
Discontinued operations
- -
0.05
(0.12 ) NET INCOME $
0.46 $ 0.30 $
1.78
$ 1.58 Weighted average number of shares
36.8
37.4
37.3 37.3 DILUTED EPS Net
income (loss) per share: Continuing operations $
0.46 $ 0.30
$
1.73 $ 1.69 Discontinued operations
- -
0.05 (0.12 ) NET INCOME $
0.46 $
0.30 $
1.78 $ 1.57 Weighted average
number of shares
36.8 37.6
37.5
37.4 Dividends per share $
0.11 $ 0.11
$
0.44 $ 0.44
WATTS WATER TECHNOLOGIES,
INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS (Amounts in millions) (Unaudited)
Year Ended December 31, December 31,
2011 2010 OPERATING ACTIVITIES Net income $
66.4 $
58.8 Income (loss) from discontinued operations
1.7
(4.3 ) Net income from continuing operations
64.7 63.1
Adjustments to reconcile net income from continuing operations to
net cash provided by continuing operating activities: Depreciation
33.3 30.5 Amortization of intangibles
18.1 14.3
Stock-based compensation
8.3 4.7 Deferred income tax benefit
(0.6 ) (6.9 ) Loss on disposal and impairment of
goodwill, property, plant and equipment and other
5.2 2.6
Changes in operating assets and liabilities, net of effects from
business acquisitions and divestures: Accounts receivable
3.5 (8.2 ) Inventories
3.1 0.8 Prepaid expenses and
other assets
(8.0 ) 9.0 Accounts payable, accrued
expenses and other liabilities
0.6 3.5 Net
cash provided by continuing operating activities
128.2
113.4 INVESTING ACTIVITIES Additions to property,
plant and equipment
(22.7 ) (24.6 ) Proceeds from the
sale of property, plant and equipment
0.8 2.2 Investments in
securities
(8.1 ) (4.0 ) Proceeds from sale of
securities
8.1 6.5 Purchase of intangible assets and other
(0.9 ) (1.0 ) Business acquisitions, net of cash
acquired
(165.5 ) (36.3 ) Net cash used in investing
activities
(188.3 ) (57.2 ) FINANCING ACTIVITIES
Proceeds from long-term debt
184.0 75.0 Payments of
long-term debt
(168.0 ) (50.9 ) Payments of capital
lease and other
(2.6 ) (1.2 ) Proceeds from share
transactions under employee stock plans
5.4 3.4 Tax benefit
of stock awards exercised
0.8 0.2 Debt issuance costs
- (3.2 ) Dividends
(16.3 ) (16.4 ) Payments to
repurchase common stock
(27.2 ) - Net cash
provided (used) by financing activities
(23.9 ) 6.9
Effect of exchange rate changes on cash and cash equivalents
7.3 (2.7 ) Net cash provided (used) in operating activities
of discontinued operations
(1.9 ) 5.5 Net cash
provided by investing activities of discontinued operations
- 5.1 INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(78.6 ) 71.0 Cash and cash equivalents at
beginning of year
329.2 258.2 CASH AND CASH
EQUIVALENTS AT END OF YEAR $
250.6 $ 329.2
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES SEGMENT
INFORMATION (Amounts in millions) (Unaudited)
Net Sales Fourth
Quarter Ended Year Ended December 31, December
31,
December 31, December 31,
2011
2010
2011 2010
North America
$ 199.7 $ 188.9
$
819.4 $ 785.5 Europe
154.4 121.9
595.5 468.3
Asia
6.1 5.9
21.7
20.8 Total
$ 360.2 $
316.7
$ 1,436.6 $ 1,274.6
Operating Income (Loss) Fourth Quarter
Ended Year Ended December 31, December 31,
December 31, December 31,
2011
2010
2011 2010
North America
$ 27.6 $ 24.2
$ 112.0 $
106.4 Europe
(2.5 ) 6.5
28.7 43.7 Asia
9.5 0.7
12.2 (0.5 ) Corporate
(8.2
) (8.0 )
(35.8 ) (35.4 )
Total
$ 26.4 $ 23.4
$
117.1 $ 114.2
Intersegment Sales Fourth Quarter Ended
Year Ended December 31, December 31,
December
31, December 31,
2011 2010
2011 2010 North America
$ 0.7 $ 0.7
$ 3.3 $ 3.6 Europe
2.0 1.4
8.4 7.6 Asia
35.9
30.3
132.9 115.8 Total
$ 38.6 $ 32.4
$ 144.6
$ 127.0
TABLE 1 RECONCILIATION OF GAAP "AS
REPORTED" TO THE "ADJUSTED" NON-GAAP EXCLUDING THE EFFECT OF
ADJUSTMENTS (Amounts in millions, except per share
information) (Unaudited) Fourth
Quarter Ended Year Ended December 31, December
31,
December 31, December 31,
2011 2010
2011
2010
Net sales $ 360.2 $ 316.7
$
1,436.6 $ 1,274.6
Operating income - as
reported $ 26.4 $ 23.4
$ 117.1 $
114.2 Operating margin %
7.3 % 7.4 %
8.2
% 9.0 % Adjustments: Cost of goods sold -
restructuring and other charges
- 0.2
- 1.5
Restructuring
1.8 4.0
10.0 12.6 Earnout adjustment
(1.2 ) -
(1.2 ) - Impairment charges
17.1 1.2
17.4 1.4 Product liability and workers'
compensation accrual decreases
- (3.0 )
- (4.5 )
Acquisition accounting
(0.7 ) -
4.7 - Due
diligence costs and other
- 4.5
1.1 7.1 CEO
separation costs
- -
6.3 - Legal settlements
-
-
(1.1 ) - Gain related to sale of TWVC
(7.7
) -
(7.7 ) - Pension curtailment loss
1.5 -
1.5 -
10.8
6.9
31.0 18.1
Operating income - as adjusted $ 37.2 $ 30.3
$ 148.1 $ 132.3 Adjusted operating margin %
10.3 % 9.6 %
10.3 % 10.4 %
Net income from continuing operations - as reported
$ 17.1 $ 11.4
$ 64.7 $ 63.1
Adjustments - tax affected: Cost of goods sold - restructuring and
other charges
- 0.1
- 1.0 Restructuring
1.2
2.1
6.6 9.6 Earnout adjustment
(0.7 ) -
(0.7 ) - Impairment charges
12.8 1.1
13.0 1.2 Product liability and workers' compensation accrual
decreases
- (1.9 )
- (2.8 ) CEO separation costs
- -
3.9 - Legal settlements
- -
(0.7
) - Acquisition accounting
(0.4 ) -
3.2
- Due diligence costs
- 2.3
1.1 4.1 Pension
curtailment loss
0.9 -
0.9 - Gain related to sale of
TWVC
(11.4 ) -
(11.4 ) - Tax
adjustments
1.1 -
1.1 (2.8 )
3.5 3.7
17.0 10.3
Net income from continuing operations - as adjusted $
20.6 $ 15.1
$ 81.7 $ 73.4
Continuing operations earnings per share - diluted Diluted
earnings per share - as reported
$ 0.46 $ 0.30
$ 1.73 $ 1.69 Adjustments
0.10 0.10
0.46 0.28
Diluted earnings per share
- as adjusted $ 0.56 $ 0.40
$ 2.19 $ 1.97 Socla
diluted earnings per share - as reported
$ 0.04 $ -
$ - $ - Adjustments related to Socla
(0.01
) $ -
0.13 $ -
Diluted
earnings per share - Socla as adjusted $ 0.03
$ - $ 0.13
$ - Diluted
earnings per share - as adjusted, excluding Socla $
0.53 $ 0.40
$ 2.06 $ 1.97
TABLE 2 RECONCILIATION OF NET CASH PROVIDED BY
CONTINUING OPERATIONS TO FREE CASH FLOW (Amounts in
millions) (Unaudited) Year Ended
December 31, December 31,
2011 2010 Net cash
provided by continuing operations - as reported $
128.2 $
113.4 Less: additions to property, plant, and equipment
(22.7 ) (24.6 ) Plus: proceeds from the sale of
property, plant, and equipment
0.8 2.2 Free
cash flow $
106.3 $ 91.0 Net income
from continuing operations - as reported $
64.7 $
63.1 Cash conversion rate of free cash outflow to net
income from continuing operations
164.3 % 144.2 %
TABLE 3 RECONCILIATION OF LONG-TERM DEBT (INCLUDING
CURRENT PORTION) TO NET DEBT AND NET DEBT TO CAPITALIZATION
RATIO (Amounts in millions) (Unaudited)
December 31, December 31,
2011 2010
Current portion of long-term debt $
2.0 $ 0.7 Plus:
Long-term debt, net of current portion
397.4 378.0 Less:
Cash and cash equivalents
(250.6 ) (329.2 ) Net debt
$
148.8 $ 49.5 Net debt $
148.8
$ 49.5 Plus: Total stockholders' equity
919.8 901.5
Capitalization $
1,068.6 $ 951.0
Net debt to capitalization ratio
13.9 % 5.2 %
Watts Water Technologies (NYSE:WTS)
Historical Stock Chart
From Apr 2024 to May 2024
Watts Water Technologies (NYSE:WTS)
Historical Stock Chart
From May 2023 to May 2024